A computation of duties underpaid is to be prepared for issue to the employer/contractor in all cases where inaccuracies are discovered that may lead to a recovery situation regardless of the method of recovery.

Because there are

numerous methods in determining amounts liable and

various types of inaccuracy

it is difficult to lay down hard and fast rules regarding the content, layout and preparation of computations. However, one principle that must be applied to all computations is that there must be no indication that some inaccuracies are viewed less seriously than others.

Computations should be based on the actual amounts of additional

earnings

benefits

unpaid deductions

identified from the employer’s/contractor’s records. However in certain circumstances computations can be estimated (COG908090).

Employer Compliance Laptop Settlement System (ECLSS)

This is a computational tool available for use by EC and is available via My Services/Corporate Services/Receivables. Use of this tool will provide a level of consistency in preparing computations. It also has the capability of providing computations for

PAYE

basic or higher rate tax, or a mix of both

a % of liable taxpayers for instance in cases where it is agreed that expenses are 60% taxable and 40% allowable

class 1 NIC (depending on the category)

class 1A NIC

grossed up tax

NIC on tax borne

interest calculations

ECLSS will also

facilitate quick and easy amendments to computations which also change interest accruing automatically

provide prints in an easy to read style (suitable for issue to an employer/contractor)